Anadarko Petroleum Corporation
(
APC
) announced that it has made a natural gas discovery in Offshore
Area 1 of Mozambique's Rovuma Basin. The Golfinho discovery well
encountered a total of more than 193 net feet (59 net meters) of
natural gas play in two high-quality Oligocene fan systems.
The new discovery is located 20 miles (32 kilometers) to the
northwest of the Prosperidade complex. This new discovery followed
the one made at the Prosperidade complex in Offshore Area 1 of
Mozambique with recoverable natural gas resources of 17 to 30
trillion cubic feet ("Tcf").
The new well was drilled at a depth of 14,885 feet (4,537
meters) in 3,370 feet (1,027 meters) of water. This discovery is
expected to add 7 to 20 Tcf of recoverable resources over a period
of time.
Anadarko operates jointly with five other companies in Offshore
Area 1 of Mozambique and has a working interest of 36.5%. The
working interests of the other co-owners are as follows: Mitsui
E&P Mozambique Area 1, Limited (20%), Empresa Nacional de
Hidrocarbonetos, ep (15%), BPRL Ventures Mozambique B.V. (10%),
Videocon Mozambique Rovuma 1 Limited (10%), and Cove Energy
Mozambique Rovuma Offshore, Ltd. (8.5%).
The consortium is planning to drill further to evaluate the
newly discovered prospect and carry on its exploration activities
in the southern and northern part of Offshore Area 1. After
completing the work at Golfinho, the partnership is planning to
mobilize the Belford Dolphin drillship to spur exploration activity
at the Atum-1 exploration well.
Anadarko has been operating in Mozambique with drilling success
in Lagosta and Camarão. It is continuously improving its overall
portfolio on the back of its drilling successes in Mozambique, Gulf
of Mexico and Ghana. Recently, Anadarko teamed up with
Linn Energy, LLC
(
LINE
)
to develop the Salt Creek field in Wyoming's Powder River
Basin.
At present, global oil and gas companies are teaming up with
local players to discover the unexplored reserves in Asia and
Africa and Anadarko has also joined this international bandwagon.
Besides Mozambique, the company is expanding its operations at
Deepwater Tano and West Cape Three Points in Ghana, and Block
SL-07B-11 in Sierra Leone.
There has been a surge in natural gas demand given its
clean-burning nature. We expect that the power generation companies
will use natural gas as fuel in place of coal, thus increasing its
consumption.
Anadarko Petroleum Corporation currently retains a Zacks #3
Rank, which translates into a short-term Hold rating.
The Woodlands, Texas-based Anadarko Petroleum Corporation is
primarily engaged in the exploration, development, production,
gathering, processing and marketing of natural gas, crude oil,
condensate and natural gas liquids.
ANADARKO PETROL (APC): Free Stock Analysis
Report
LINN ENERGY LLC (LINE): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research